Union Budget 2021: Must know Income Tax HIGHLIGHTS for salaried individuals, taxpayers

In order to bring certainty in income tax proceedings at the earliest, the central government budget 2021 has proposed to reduce the time limits for general assessment or processing of income tax return by three months and also for filing of income tax returns. Means the income tax department will have to process the ITR by 31st December 2021 instead of 31st March 2022. Photo: Reuters

In order to incentivise purchase of affordable house, the Union budget has proposed to extend the eligibility period for claim of additional deduction for interest of Rs 1.5 lakh paid for loan taken for purchase of an affordable house to 31st March 2022. Photo: PTI

Delay in deposit of the contribution of employees towards various welfare funds by employers result in permanent loss of interest/income for the employees. In order to ensure timely deposit of employees’ contribution to these funds by the employers, the union budget has proposed that the late deposit of employees’ EPF contribution by the employer shall never be allowed as income tax deduction to the employer. Photo: EPFO Twitter/Pixabay

In order to provide relief to employees, it is proposed to provide tax exemption to the amount given to an employee in lieu of LTC subject to incurring specified expenditure. Means the Cash Voucher Scheme launched for the central government employees has been now extended to all earning individuals. Photo: PTI

In order to incentivise home buyers and real estate developers, the union budget 2021 hsa proposed to increase safe harbour limit from 10 per cent to 20 per cent for the specified primary sale of residential units. Photo: Reuters

In order to provide relief to taxpayers, advance-tax liability on dividend income shall arise only after the declaration/payment of dividend. The dividend paid to Real Estate Infrastructure Trusts or Infrastructure Investment Trusts (REIT/InvIT) shall be exempt from TDS. It is also proposed to clarify that deduction of tax on incomes including dividend income of Foreign Portfolio Investors may be made at treaty rate. It is also proposed to exempt dividend payment from levy of Minimum Alternate Tax (MAT) for foreign companies if the applicable tax rate is less than the rate of MAT. Photo: Reuters